Malaysia Portfolio Investment Calls and Stock Market Update (9 April 2020)
Disclaimer: This research should be used purely for informational purposes and is my own personal opinion. I bear no responsibility to whatever investment decisions taken by anyone with regards to this research.
The Kuala Lumpur Composite Index (KLCI) today rebounded by 0.6% to 1,370 points, reversing the loss from the day before of -0.6% (1,361 points). Top 5 gainers for the day are KESM Industries (+0.9), ViTrox Corp (+RM0.4), Aeon Credit Services (+RM0.3), Nestle (+RM0.3) and Kuala Lumpur Kepong (+RM0.3).
2 out of the 5 companies above (KESM, Vitrox) are involved in the electronics semiconductor business but there hasn’t been any notable positive news for the Electrical and Electronics industry recently. This points towards possibly oversold positions in the past, and the gains today might be to reflect that. There are 2 major developments that investors will be keeping a close tab on, one, the OPEC meeting today on global crude oil production, and two, the possible MCO extension which is due for tomorrow. I think much of the market movements tomorrow will be affected by the later factor as an extension will mean further loss of support from business activities and return to business as usual will boost the market.
For the Malaysian companies I am keeping track with a Buy call, most of them are doing quite well still. Bermaz Auto and Affin Bank in particular have performed well today registering an implied return of 6.0% and 5.6%. To date, the portfolio of companies I am keeping track on have improved to 3.1% return (8 April 2019: 1.8%). However, I expect that the market will be significantly more volatile tomorrow in light of the 2 key developments above. You can have a look at the companies I am keeping track on in the Google Excel sheet here or the table below.